Key Definitions Flashcards
Acquisition
A transaction where a TNC boys another company in order to expand
Asylum Seeker
People who have left their country and are seeking asylum in another, waiting to be granted residency and become a refugee
China’s Open Door Policy (1978)
China allows foreign industry and TNC’s in to promote a modern and thriving China
Containerisation
A logistical system of transporting large amounts of goods in steel containers
Core region
Wealthier, industrially developed countries that benefit and control global markets, making periphery regions depend on them
Cultural diffusion
The spread of cultural beliefs and social activities into different cultures
Cultural erosion
The reduction of a culture due to globalisation
Cumulative causation
Like a multiplier effect “Success breeds Success” - As the core regions increase in prosperity the periphery regions will too due to their links with the core
Deindustrialisation
A reduction in industrial capacity, leading to social and economic change in a region
Diaspora
To scatter about - People displaced from their homeland, voluntarily or forced
Downward transition zones
A country or city with predicted economic decline, industrial reduction or switched off from globalisation
Economic migration
Movement of migrants to improve financial income or standard of living
Economies of scale
The concept of increasing profits by producing a larger amount of products, as the overall average price to manufacture each product is lowered
Foreign Direct Investment (FDI)
An investment by one country or business with an interest in another country
Global common
An area that does not belong to one country, but instead belongs to everyone, including: the atmosphere, international waters, outer space and Antarctica
Global governance
The process of global management, where multiple nations act together in matters that affect the entire world
Global hubs
Cores that demonstrate connections to the world (through trade, ideas, migration etc..) TNCs and foreign direct investors will show an interest to base here
Globalisation
The growing interdependence of countries through cross-border transactions (capital, technology, migration, knowledge, culture etc…)
Glocalisation
The adaptation of a good offered by a TNC to suit a local market
High-level service
Services that require skilled employees and can have complicated process e.g. financial services
Interdependence
The theory that nations depend on each other economically, politically, socially and environmentally
International Bank for Reconstruction & Development (IBRD) and World Bank Group (WBG)
Both offer loans and temporary financial assistance to developing countries
International Monetary Fund (IMF)
A fund of 189 member countries with the aim to aid each other to achieve financial stability and provide loans for development
Low level service
Services that require little training or skills that can be easily learnt e.g. customer service call centres
Merger
TNC’s join to form one larger company, helping to form foreign links if the TNC is from a foreign country
NGO
Non governmental organisation - these organisations usually have a weaker influence over global governance
Offshoring
Company moves parts of its operations to another country often to save money
Outsourcing
A business contracts outside businesses to complete some of their work with the aim to reduce costs
Periphery region
Less wealthy, developing / less developed countries that have less power over global markets
Potential areas of growth
Regions where future economic development are predicted due to their undeveloped resources
Privatisation
When national public services become owned by private businesses
Refugee
Those granted permanent or temporary residency by the host country or the UN refugee agency, who have been forced to leave their homes and travel to another country due to fleeing conflict, political or religious persecution
Sovereignty
Control over a country’s own laws and regulations
Special Economic Zones (SEZ)
Regions where the government offer incentives to attract industry
Transnational company (TNC)
A company which operates in different countries to where they are originally based
Trade bloc
A group of countries that act together to promote trade and a free movement of goods / services between member states
Upward transition zones
A country or city with predicted industrial and economic increase (e.g. Iceland, Mexico)
World trade Organisation (WTO)
Members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis
